Fixed Deposits
Features & Benefits
Federal Fixed Deposit scheme is the right option for those who wish to invest their hard earned money and get periodical income by way of interest.
How to Invest ?
- Opening a fixed deposit is very easy. You can open the deposit either as online or offline.
- If you are having FedNet - Internet Banking account, please visit FedNet to open Cash Certificate online.
- If you do not have Internet banking facility activated, please visit your branch for opening the deposit.
- Open fixed deposit through our mobile banking application FedMobile.
Who can Invest ?
Who can open fixed deposit?
- Individuals
- Individuals jointly with other Individuals
- For Minor Individuals by Guardian
- HUF
- Sole Proprietory concerns
- Clubs/Associations
- Firms
- Joint stock companies
- Any other entity not prohibited by RBI
TDS and PAN
- In the case of Fixed Deposits and Cash Certificates, applicable TDS will be deducted from the interest credited to operative account/ term deposit periodically.
- Income tax will be deducted as per the law applicable and if the depositor‘s total income including the interest earned on deposit does not come under the purview of income tax, 15H/15G has to be submitted by the depositor to the branch after opening the term deposit and at the beginning of the Financial Year in the subsequent Financial Years.
- With effect from 01 July 2011, for opening term deposit exceeding Rs. 50,000/- with the bank, it is mandatory to quote Permanent Account Number (PAN) of the customers or submit Form 60/61, duly signed.
- In case the customer has no PAN number In the absence of PAN, Form 15G/H and other exemption certificates will be invalid even if submitted & penal TDS will be applicable.
- As per section 206AA introduced by Finance (No. 2) Act, 2009 effective April 01, 2010, every person who receives income on which TDS is deductible shall furnish his PAN, failing which TDS shall be deducted at the rate of 20% in case of Domestic deposits
- Kindly visit your Federal Bank branch with your PAN card (original & copy) to get the same updated on the bank accounts.
- You can also apply for PAN through Federal Bank Branches.
Fixed Deposits
Features & Benefits
Fixed Deposit is the right option for those who wish to invest their hard earned money and get periodical income by way of interest.
Cash Certificate
Features & Benefits
Cash Certificate is a growth oriented scheme for those investors who are looking to double their money in the shortest time at zero risk. Interest will be quarterly compounded and reinvested. Interest cannot be withdrawn before maturity of the deposit. On the due date of the deposit, interest and principal amount will be credited to your Federal Bank Savings account automatically. Cash certificates have the automatic renewal facility.
Tax Saving Deposit
Features & Benefits
Are you looking for the ways to save income tax ? Then Federal Tax Savings Deposit will be the convenient and risk free option for you. Tax benefits under Sec. 80 C of the Income Tax Act is applicable. In the case of joint accounts, tax benefits are available to first account holder.Tax Savings Deposits are having a fixed period of 5 years.
Recurring Deposit
Features & Benefits
A recurring deposit is a type of term deposit which allows you to save a fixed amount every month systematically. Federal Savings Fund is a simple, yet brilliant recurring deposit scheme to save small amounts of money each month to plan for your future needs or to save towards a goal. You can choose any amount and term according to your convenience. If you feel it is tedious to make a monthly payment then we have the standing instructions facility. One can even avail a loan against the recurring deposit.
Millionaire Deposit
Features & Benefits
Millionaire Federal Savings Fund is a unique recurring deposit plan that lets you invest systematically over a period of time and makes you a millionaire on maturity.Any Resident or NRI customer can open this deposit.
Deposit Plus (Non-callable Deposit)
Features & Benefits
Federal Bank’s Deposit Plus is an investment option to provide higher interest rates for your idle money than normal deposits.
How to open a Fixed Deposit using FedMobile?
Open a Fixed Deposit online, using FedMobile App.
Federal Bank offers the Fixed Deposit scheme at attractive interest rates. The tenure of the FD account ranges between 7 days and 10 years.
Senior citizens are offered an additional interest rate.
Frequently Asked Questions- Fixed Deposits
What is a fixed deposit?
A fixed deposit is a financial instrument offered by banks that allows individuals to deposit a specific sum of money for a predetermined period at a fixed interest rate.
How can I open a fixed deposit account with Federal Bank?
You can open a fixed deposit account with Federal Bank by visiting your nearest branch or through the online banking facility (FedNet) or through mobile banking app (FedMobile).
What is the minimum deposit amount required to open a fixed deposit with Federal Bank?
Minimum deposit amount for Fixed deposit is just Rs. 1000/-
What is the maximum tenure for a fixed deposit with Federal Bank?
The maximum tenure for a fixed deposit with Federal Bank is typically up to 10 years.
Can I prematurely withdraw my fixed deposit before the maturity period?
Yes, you can prematurely withdraw your fixed deposit before the maturity period. However, penalties or charges may be applicable, and the actual terms and conditions depend on the bank's policies.
Is the interest on fixed deposits taxable?
Yes, the interest earned on fixed deposits is taxable as per the income tax laws of the country. The bank may deduct TDS (Tax Deducted at Source) based on applicable rates if the interest exceeds a certain threshold.
Are senior citizens eligible for additional interest rates on fixed deposits?
Yes, senior citizens are often eligible for higher interest rates on fixed deposits compared to regular customers. Federal Bank offers preferential rates for senior citizens.
Can I avail a loan against my fixed deposit with Federal Bank?
Yes, you can avail of a loan against your fixed deposit with Federal Bank. The loan amount may vary based on the bank's policies, and interest rates are typically lower compared to other types of loans.
How is the interest on fixed deposits calculated?
The interest on fixed deposits is calculated based on the fixed deposit amount, the applicable interest rate, and the tenure of the deposit.
Can I choose to receive the interest on my fixed deposit at regular intervals?
Yes, you can choose to receive the interest on your fixed deposit at regular intervals. Federal Bank provides options such as monthly, quarterly, half-yearly, or yearly interest payouts.
Is it possible to open a fixed deposit jointly with another person?
Yes, you can open a fixed deposit jointly with another person. Federal Bank allows joint accounts with various combinations, such as individuals, minors with guardians, etc.
What happens if I forget to renew my fixed deposit after maturity?
If you forget to renew your fixed deposit after maturity, Federal Bank may offer an option to automatically renew it for a specified period at prevailing interest rates. Alternatively, the funds may be transferred to your savings account.
Can I open a fixed deposit account for a minor?
Yes, you can open a fixed deposit account for a minor with Federal Bank
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